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Monthly Archives: July 2014

Now a days all TDS Deductors want to avoide every consequences arising on behalf of this matter from Income Tax Department, therefore issue TDS Certificate on or before 30th July, 2014 of Q1 for Fin. Year 2014-15 and Asstt. Year 2015-16. The Last date to issue a TDS/TCS Certificates for Q1 of Fin. Year 2014-15 is 30th July, 2014. This last/due date is applicable for all deductors who are other than the office of the Government.

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure

Section

Nature of Demand

Quantum of demand or penalty

Failure to deduct tax at source

201(1)

Tax demand

Equal to tax amount deductible but not deducted

201(1A)

Interest

@1 % p.m. of tax deductible

271C

Penalty

Equal amount of tax deductible but not deducted

Failure to deposit tax at source

201(1)

Tax demand

Equal to tax amount not deposited

201(1A)

Interest

@1.5% p.m. of tax not deducted

276B

Prosecution

Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine

Failure to apply for TAN No. u/s 203A

272BB

Penalty

Rs. 10000

Failure to furnish prescribed statements u/s 200(3)

272A(2)(k)

Penalty

Rs. 100 every day during which the failure continues subject to maximum of TDS amount

Failure to issue TDS certificate u/s 203

272(A)(g)

Penalty

Rs. 100 every day during which the failure continues subject to maximum of TDS amount.

Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)

272(A)(i)

Penalty

Rs. 100 every day during which the failure continues subject to maximum of TDS amount

Failure to mention PAN of the deductee in the TDS statements and certificates

272B

Penalty

Rs. 10000

If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.

Please note:It is now mandatory for all the deductors to issue the TDS certificates after generating and downloading the same from “TRACES”(www.tdscpc.gov.in). Refer to Circular no.3/2011 dated 13-5-2011, Circular No.1/ 2012 dated 9-4-2012 (in respect of 16A)

Now in India it is a very common problem and equal truth that missing or lost including Damages or Correction in PAN. Apart from this we all very well known about importance of PANCard in our daily life. So, a person really feel anxiety if he/she has lost or has some not the PANcard he/she had. In this matter frequently asked question by many persons is that –

” I have lost my PAN card, how can I apply for theduplicate card?.

There are two simple solution in this regard that-

By getting reprint of PAN cardmanually, and

By applying online.

Manual Way to get reprint of PAN Card :

Visit nearest office of NSDL or UTITSL office and ask for the application formcalled “Request for New PAN Card or/and Changes or Correction in PAN data” .

Fill it up, pay the Fee of Rs 94 & submit to the office of NSDL or UTITSL.

Wait for a month.

Online way to get reprint if PAN card :Step 1 :Click NSDL Link for online Reprint Forms . You will get a page where go down to below , you will find a filed for selecting your status i.e whether you want PAN for individual or Firm or other. Like below photo

Once you select your online form , form REPRINT of PAN card will come on screen.

Step 2 :Most Important to remember here is that since you just want reprint of your lost PAN card , fill all fields in the Form but do not select any box on left margin.

Step 3 :Pay the fee of Rs 94 by bank transfer or credit card. For person who are abroad, will have to pay Rs 944

Step 4:On successful payment , an acknowledgement screen will come , which must be printed out. Note down Acknowledge Number for future correspondence.

Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure

Section

Nature of Demand

Quantum of demand or penalty

Failure to deduct tax at source

201(1)

Tax demand

Equal to tax amount deductible but not deducted

201(1A)

Interest

@1 % p.m. of tax deductible

271C

Penalty

Equal amount of tax deductible but not deducted

Failure to deposit tax at source

201(1)

Tax demand

Equal to tax amount not deposited

201(1A)

Interest

@1.5% p.m. of tax not deducted

276B

Prosecution

Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine

Failure to apply for TAN No. u/s 203A

272BB

Penalty

Rs. 10000

Failure to furnish prescribed statements u/s 200(3)

272A(2)(k)

Penalty

Rs. 100 every day during which the failure continues subject to maximum of TDS amount

Failure to issue TDS certificate u/s 203

272(A)(g)

Penalty

Rs. 100 every day during which the failure continues subject to maximum of TDS amount.

Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)

272(A)(i)

Penalty

Rs. 100 every day during which the failure continues subject to maximum of TDS amount

Failure to mention PAN of the deductee in the TDS statements and certificates

272B

Penalty

Rs. 10000

If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.

CPC(TDS) has issued a reminder communication to all deductors regarding invalid/non available PANs. The issued communication has been given below:

Dear Deductor,

CPC(TDS) has observed from its records that you have consistently reported Invalid / Not Available PANs in the Quarterly TDS Statements submitted during the period from Q4, 2012-13 to Q3,2013-14. Please note that you are amongst deductors, who have reported highest number of above mentioned incorrect PAN records in their TDS Statements.

Please refer to the following details with respect to Invalid PANs reported in your TDS Statements:

Deductor’s TAN

Count of PAN Errors Q4,2012-13

Count of PAN Errors Q1,2013-14

Count of PAN Errors Q2,2013-14

Count of PAN Errors Q3,2013-14

Implications of reporting Invalid/ Not Available PANs in TDS Statements :

The Deductor will not be able to provide TDS certificate to the deductee, if valid PANs are not reported.

The correct deductee will not be able to avail the credit of TDS deducted for taxes deducted.

Under section 277 of the Income Tax Act, 1961, if a person makes a statement in any verification under this Act or under any rule made there under, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, is punishable.

Actions to be taken :

Please note that Correct reporting at the first instance will help in avoiding submitting Correction Statements.

In case of any errors observed in reporting, the Corrections must be reported at the earliest to avoid unwarranted delays.

The Deductor must ensure that the PANs for deductees reported in TDS Statements are valid and correct. TAN-PAN Master can be downloaded from TRACES and should be used to file statements to avoid quoting of incorrect PANs.Please Login to TRACES and navigate to “Dashboard”to locate “PAN Verification” in the Quick Links menu. The functionality to download Consolidated TAN – PAN File has also been provided that includes all the PANs attached with the respective TANs.

You can use the facility of Online Corrections at TRACES with Digital Signature. Please refer toe-tutorialsfor assistance.

It is advised to avoid submitting TDS Statements with Invalid PANs and take corrective actions at the earliest.

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same. The OTPs will remain valid for 24 hours within which the taxpayer has to complete the process. For ‘Foreign/ NRI’ taxpayers, the OTP validation of the email ID would be sufficient.

Validation of email and mobile numbers has been introduced to facilitate taxpayers as in many cases incorrect emails and mobile numbers have been provided and taxpayers did not receive important communication from the Department. Further, it has been observed that in many cases taxpayers are not able to reset their password since the new temporary password from the Department may be sent to their registered email which may be different from the taxpayer’s personal email, e.g. email of their intermediary.

This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. Further, this validation will ensure that Department can send an OTP for resetting the password used for Login in case the taxpayer has forgotten the password.

One mobile number or email ID can be used for a maximum of 10 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members and related business concerns (not exceeding 10 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department.

The taxpayer can enter any other person’s email or mobile number in addition, as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using “Profile Settings à My Profile” the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc.

It is advised that the emails and SMS from the Income tax Department may be included in the ‘safe list’ or ‘white list’ to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. Taxpayers are also advised not to share their user-id and password of their e-filing account with others to prevent un-authorized access.Taxpayers can reset their password using the ‘Forgot Password?’ link while logging in to their e-filing account and by providing the necessary details.

The Department requests the cooperation of all taxpayers for completing this validation process at the earliest for a smooth and convenient return filing process.